Who saw the financial meltdown coming?
Like most people I didn’t really see the financial meltdown coming. I did think that money was too loose and that interest rates were the wrong tool for fixing that issue, however I merely expected some inflation and perhaps a minor slow down once the central bankers moved to arrest it. I certainly did not expect any sort of widespread collapse of previously successful and stable businesses, or a situation where a subsequent doubling of base currency in the USA could happen at the same time that commodity prices declined (theoretically I have no problem with both coinciding but I didn’t expect to see it in my lifetime). For a glance at the post crisis spike in base currency take a look at the following chart, note the time scale and then note what happens at the very end of the chart:-
Clearly people like me, and clearly people a lot more educated in economics than the likes of me, were missing part of the picture.
So who saw the financial meltdown coming? Not as some vague problem in the future but as a specific impending problem.
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